The Anchor: 8 reasons why the licensing & merchandising market holds promise in India

25 Sep,2012

By Jiggy George

 

#1 India is a growth economy with a vibrant entertainment market. Television, film and sports in India have a huge audience which creates potential demand for licensed merchandise for brands and icons. Entertainment is also inexpensive in comparison to most markets; eg, you can get access to a plethora of channels for as little as Rs 300 or less a month. So, our audience is aware of brands via content.

 

#2 Our consuming class is significantly large and have an appetite for licensed brands.

 

#3 While entertainment licensing with brands like Tom and Jerry, Disney, WWE, Angry Birds, Power Rangers, Ben Ten and Chhota Bheem have an active kids’ audience and is one of the fastest growing segments, sports, fashion, movie and celebrity licensing are also coming to the forefront.

 

#4 Retail is on the cusp of growth and with FDI opening up, will launch licensing into double digit growth figures in coming years.

 

#5 With e-commerce growing at its current rapid pace, it is now possible for consumers who are aware of local and international brands, and are fans to buy licensed products on-line even if traditional and modern retail formats is unable to make it available in the towns and cities.

 

#6 With the economy growing, there is a hunger among OEMs (original manufacturers) and large suppliers/distributors to create their own brand and identity. Licensing is an excellent method of leveraging iconic brands to launch new brands and business propositions.

 

#7 Franchising is another area of growth which can use licensing models to create differentiated and outstanding offerings in entertainment, restaurants and retail.

 

#8 Indian consumers are now more open to stating their identity and sporting it on their apparel, accessories and items of everyday use through brands they like, such as Mr Men (with characters like Mr Happy, Mr Strong, Little Miss Sunshine etc), WWE, Superman, Batman, Shrek, Angry Birds and others.

 

Jiggy George is founder and CEO, Dream Theatre Pvt Ltd

 

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